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I fully understand the branding part, it's the "rather burn it than have someone wear it" part that I don't get...not that I need an explanation, I just don't get his mentality on that.

And yes, you're right, he should have kept his trap shut.

Working in marketing, many brands have that attitude of 'we are a premium' brand. They wont associate themselves with certain types, and those types are found throughout various marketing channels

Example: coach bags. They are certainly not the most expensive bag, and I see more late tennage to twentysomethings with lower paying jobs buying them....yet as a brand, coach will not advertise on channels that those people are in and instead opt for upscale magazines, sites, etc.